Aleksey Muratov - CWT Ideology

the regular investors’ lives were ruined by the gratuitous

consumer loans. Securities were not worth a penny and

millions people became unemployed and idle. Some

people flaunt the idea that during the depression in the

United States all of the country’s assets were lost. But this

is not what happened, when someone loses value – another

receives it. The well-kept secret is who had bought those

assets. Those who control the FRS bought them, the same

people who organized the economic depression with the

help of the FRS.

In 1932 Franklin Delano Roosevelt was elected president

of the US. He began “fighting the crisis”. US citizens were

barred from possessing precious metals and had to hand

them over to the authorized banks, or the owner would face

a prison sentence. Soon after the expropriation the price of

gold went up significantly.

At the same time American industry was being procured

by the bank clans and the FRS. This was not only about

saving American industry.

Not everybody kept silent, congressman and banker from

Pennsylvania, Louis McFadden, gave a famous speech that exposed

the Great Depression. In a highlight he said: “It was no accident.

It was a carefully contrived occurrence. The International Bankers

sought to bring about a condition of despair here so they might

emerge as the rulers of us all”. In 1936 the politician suddenly died

at the age of 50.

World War II made the United States the world’s richest

country. Investments in the construction plans of the Third Reich

were successful. The list of American backers of Hitler included

names like Rockefeller and Morgan. In the summer of 1929, at a

special meeting of bankers, representatives of the Morgan Financial

and industrial group acknowledged the need to support the German

Nazi movement.

At the end of the war, in 1944, all States signed the

Bretton Woods agreement, which made the dollar the only

legitimate global reserve currency. Since 1944 these green

papers, printed by a private organization and unsecured,

were supposed to be used for all the settlements and storage

of foreign-exchange reserves. However, the US suddenly

experienced problems.

The young and charismatic president John Fitzgerald

Kennedy – a representative of a large Irish clan – started a

crusade against the FRS. In his speech about the “secret

societies” the president called for the construction of an

alternative power system. The Government began emission

of banknotes, secured with precious metals through

the Ministry of Finance, under the presidential decree

No. 11110. Those dollars were endorsed under the name

“United States Note” not “Federal Reserve Note”. That

is they were reprinted and endorsed by the State, not a

private entity. They were secure.

Six months later Kennedy was killed. Then his brother

Robert was also killed. Some believe for knowing more than

he should. The Kennedy rebellion was suppressed. Banknotes

were withdrawn. Now the two- and five-dollar bills of 1963

are rare.

As president, John Kennedy felt like a puppet of the FRS,

and he did not like it. Thus, Kennedy fought for the interests

of the American people and actually tried to make a coup

d’etat from above.

There remained a detail that got in the way of the

banker’s ultimate objective. This was the problem of

Bretton Woods and the issuing of money. Remember that

money had a gold equivalent and could be exchanged for

gold under the Bretton Woods agreement at any time.

However, the bankers had printed one thousand times

the amount money than they had gold in stock. But the

bankers were legally obliged to make such an exchange if

demanded. If all the bank customers came at the same time

requiring the exchange of money for gold, their system

would collapse there and then.

So they decided to change this obstructive law with

the help of the then president of the US, Richard Nixon.

He implemented a series of economic reforms in 1971

known as the “Nixon shock”. The most significant reform

was the refusal of the US to secure the dollar rate with a

gold equivalent, which resulted in a virtual collapse of

the Bretton Woods system. The bankers were now free to

produce as much paper money as they needed. Money truly

became paper, as the Nixon decision gave the dollar note a

value which was not backed by anything.

The way to organize

and control crisis

The same banking system caused the mortgage crisis

of 2007—2008, which gave hundreds of thousands of US

households to the banks. A huge number of Americans were

unable to pay their financial obligations to the bank. The

banks took the debtors’ houses and put them up for sale.

Why had lots of Americans suddently become insolvent?

The reason is that the creditors gave loans to questionable

borrowers who defaulted on these loans.

This play started in 2001, the bankers began to give money

to all takers. They were considerable amounts, as it was for

real estate purchases. Some banks offered loans with a floating

interest rate, adjusted yearly from the start of the third year.

At the beginning the rate was unusually low. Others advertised

loans that pushed even the first payment for a new house into

the future. No first payment or security was needed.

The seductive conditions that they offered Americans

were tempting to those who were not even considering

buying real estate. Everybody began to take loans trying to

improve their living conditions. People, who had no money,

took out loans from institutions, who also had no money

but borrowed and raised the funds in order to loan them out

under this scheme.

One debt caused another one, debt was everywhere. But

the system of selling debt had its industrial logic. The sale

of mortgage bonds and loans was performed like this: the

rating agencies assessed the degree of credit non-repayment

risk and depending on that degree, the securities had various

degrees of “freshness”. Extra Grade and Grade I were more

expensive but had less risk and found their buyers quickly.

However, second and third grade ratings were also quite

popular. The price of the risky mortgage “package” was low

and had a large demand.

Everybody was satisfied. Banks ended contracts with

private persons, got its money from investors and could start

the affair again. Investors had invested and were waiting for

profits as skeptical yet willing customers could apply for

loans again.

The hilarity of the situation was that investors, or

speculators, who bought cheap “second-rate” mortgage

obligations on the so called scientific basis propagated by

rating agencies divided them into more grades. This time

the “highest grade” (reliability rating) was not the best of

the best but the best of the worst.

This went on for 6—7 years! The US economy was

growing, GDP was increasing, everyone was happy. Many

people were not only kept occupied but also made large amounts

of money, but produced nothing. This debt pyramid was supported

with constant growth of real estate prices, which enabled attraction

of new players with new financial resources to the housing and

mortgage market.

Banks, major reputable companies with many years or even

a century or two of operation started the same game, let’s call it